Mumbai: Benchmark equity indices declined on Thursday post the RBI monetary policy, dragged down by banking counters, after the unexpected announcement of reducing cash in the financial system.
The RBI on Thursday left its key interest rates unchanged for a third straight meeting but signalled tighter policy if food prices drive inflation higher. The monetary policy committee, which has three members from the central bank and a similar number of external members, held the benchmark repurchase rate (repo) at 6.50 per cent in a unanimous decision.
The 30-share BSE Sensex fell 307.63 points or 0.47 per cent to settle at 65,688.18. During the day, it tanked 486.67 points or 0.73 per cent to 65,509.14.
The NSE Nifty declined 89.45 points or 0.46 per cent to end at 19,543.10.
The rupee gained 19 paise to close at 82.66 against the US dollar on Thursday after the Reserve Bank left its key interest rates unchanged.
Global oil benchmark Brent crude climbed 0.05 per cent to $87.59 a barrel.
Foreign Institutional Investors (FIIs) on Wednesday bought equities worth Rs 644.11 crore on Wednesday, according to exchange data.